get competing quotes
Solar Panel Rebates

Solar Panel Rebates

Find Out How Much You Can Save On Solar Panels In Your State.

In addition to state and federal tax credits, many homeowners will also qualify for additional solar panel rebates in their state. Find your state below to see if you qualify.

Search Solar Rebates By State

Unlike state and federal tax credits, rebates will not reduce your overall tax liability. A state rebate will act almost as a "refund" once the installation is complete. In most cases, you will still be able to claim the 26% federal tax credit on the full installation amount before applying the rebate. Use the table below to find the solar panel rebates available in your state.

Solar panels provide you with a great way to cut your energy expenses while reducing your carbon footprint. However, before you sign up for installation, we recommend that you review all possible incentives, tax credits, and rebates. Understanding all rebates can help you save the most money installing a solar energy system. Please find out more today with our team at Solving Solar.

Major Solar Incentives

Significant solar incentives make it easier for property owners to embrace renewable energy. In addition, reviewing all your possible options before purchasing solar panels allows you to keep your expenses under control. We understand that installation costs and supplies often feel prohibitive when it comes to solar systems for power. That’s why we make it easy for you to find all incentives that can reduce upfront costs.

Federal Tax Credit

The government currently offers a federal solar tax credit. This offer provides you with 26% credit on any solar panel system installed from 2020-2022. In addition, you can get a 22% credit for systems installed in 2023. Currently, the federal government does not have plans to offer credits past 2023. The government offers this federal investment tax credit for the year that you get your system installed and operational. The credit impacts the amount of money you have to pay for your federal income taxes.

State Tax Credits

You may also apply for a state tax credit for solar power systems. State credits lower the income tax you must pay to your state. However, depending upon the amount that you deduct from your state taxes, your federal taxes may increase.

Some areas offer additional state incentives to property owners. You can review the state incentives for renewables (DSIRE) database to ensure that you get access to all applicable benefits from the state tax credit in areas like California, Texas, and Washington.

Cash Rebates

Sometimes, residents get a partial rebate for the cost of installing a solar energy system. These rebates may come from:

  •     Your utility company
  •     Your local government
  •     Specific organizations running rebate programs

Rebates generally do not impact your federal tax credit. In most cases, these rebates are a one-time dollar reduction that makes it easier to pay for a solar power system. However, available rebates may change over time, impacting the price for solar equipment installation.

Solar Renewable Energy Certificates (SRECs)

SRECs provide you with a way to earn money just for generating solar power. You earn credits by producing solar energy and then get money from utility companies for these credits.

Utility companies need SRECs to meet the requirements of their Renewable Portfolio Standards (RPS). Many energy companies, like SCE and PG&E, generate enough SRECs on their own. However, some companies cannot.

In this situation, they purchase SRECs from other producers. This practice allows them to meet a set solar quota. Your SRECs involves the amount of energy recorded on your meter.

You can learn more about net metering with our team.

Performance-Based Incentives (PBIs)

Some utility companies offer PBIs. PBIs give you a flat-rate payment for each kWh (kilowatt-hour) that you generate with your solar equipment.

Generally, companies set the rate you receive for PBIs at the time of installation. Therefore, you don’t have to submit certificates to get payment for the PBIs. Instead, the compensation process should occur automatically.

What Is the Federal Solar Tax Credit?

The federal solar tax credit allows you to claim a credit on your income taxes. You get to claim a portion of the expenses associated with the installation of a solar photovoltaic (PV) system. Most solar panel systems are solar PV systems.

The government has taken steps to encourage the adoption of PV systems with the help of the IRS. However, the solar investment tax credit may not last forever. Currently, next year is the last year that you can claim this credit on your federal taxes.

Why Does the Government Offer Solar Panel Rebates?

The government offers solar rebates for several reasons. Primarily, the government wants to encourage the use of renewable energy. Lowering your tax liability indirectly allows the government to make it easier to use solar power.

The government may also offer tax exemptions to lower the cost to install and use solar energy. Unlike deductions, tax exemptions do not directly impact your taxable income. You can learn more about all applicable incentives when you contact our team.

Am I Eligible To Claim the Federal Solar Tax Credit?

You must meet specific eligibility criteria to qualify for a federal ITC. The government covers a portion of your expenses if you:

  •     Install your system before the end of 2023
  •     Use your system in the year of its installation
  •     Install the system in your primary or secondary home

Additionally, you must own the system and use financing or cash to finance it.

Steps To Apply for Federal Solar Tax Credit

To apply for a tax credit for the fees charged by solar installers, you need to:

  •     Figure out your total expenses
  •     Decide if you are a full-time or part-time resident of the house
  •     Review state credits and rebates

Make sure you review any property tax exemption before you apply. Then, include the charges on your 1040 form.

Can You Claim the Solar Tax Credit More Than Once?

You can only claim a solar tax credit for renewable energy modules once for each solar array. However, you may move a portion of your credits over to the following tax year. You may also apply for new credit if you live in multiple properties or install a new system.

Are Solar Rebates Taxable Income?

You do have to report any solar rebates you receive as taxable income. Therefore, failure to properly report your rebates may get you in trouble. You can learn more about rebates, tax credits, and more when contacting our Solving Solar team. We help you find installation companies in your area that can handle all your solar energy needs. Please find out more by contacting us today.

Get A Free Solar Panel Quote Today

If you’re ready to learn more about solar panels and how much you can save when you install solar panels at your home, you can use our free solar panel calculator or fill out our solar panel quote form today.

HAVE QUESTIONS?

Get Answers To Your Questions From Our Solar Panel Pros

If you have questions about solar panel companies, solar panel brands, solar panel pricing, solar panel financing or anything else at all feel free to reach out and speak to one of our solar panel pros.

Get Quotes From Solar Installers Near You Solving Solar will match your project with the top installers near you pulled from our large network of solar panel installers across the country.
Chat Live With A SolvingSolar.com Expert Have questions or concerns? Want to know more about our network of installers? If you'd like to speak with one of our solar panel pros, you can use our easy chat feature to speak with someone right away.
Get A Fast Quote For Solar Panels
How much do solar panels weigh?

The average solar panel weighs about 40 pounds. This will add about 2.8 pounds per square foot to pitched roofs, and about 5 pounds per square foot for flat roofs.

Can Solar Panels Withstand Hurricanes?

When properly installed, especially in hurricane-prone areas like Florida, the strict installation regulations ensure that solar panel systems are as safe as the rest of your home and roof. In many circumstances, the added reinforcement actually helps the home and roof fare better in a hurricane than a home without solar panels. Of course, as in any natural disaster, anything can happen and there is no way to guarantee your solar panels won’t sustain damage or be ripped up along with the roof.

How much energy does a solar panel produce?

Solar panels are typically going to be able to produce between 245 watts and 400 watts per hour. This means that if you live in a place that gets 6 hours of direct sunlight each day, a 300-watt solar panel will produce 1.8 kilowatt-hours and a 400-watt solar panel will produce 2.4 kilowatt-hours. Multiplied by 365, this adds up to about 650 kWh to 875 kWh per year.

How do solar panels work?

Solar panels, or solar photovoltaic panels, transform sunlight into usable energy by converting the light into an electric field that then flows into a conductive wire.  The conductive wire flows into the inverter which then transforms the electricity to an alternating current which can then be used to power a property.

You can read our full article about how solar panels work here.

How long do solar panels last?

Solar panels have a typical lifespan of 25 to 30 years. Once solar panels reach this point they begin to decline in efficiency. However, with recent advances in solar panel technology, it could make more sense to replace your solar panels in 10 years to maximize the improved efficiency.

Can Snow and Ice Damage Solar Panels?

Snow and Ice are rarely an issue for a properly installed and maintained solar panel system. Solar panels generate a good amount of heat through their operation and will usually melt any snowfall or ice accumulation. Solar panels are also almost always installed at an angle so snow and ice will generally slide right off. If your panels become entirely blocked by snow or ice, however, they will not generate power, the same as with any other debris that might cover your panels.

How efficient are solar panels?

Modern solar panels are usually about 15% to 18% efficient. This means that 15% to 18% of the sunlight they absorb gets turned into energy. The remaining sunlight is lost as heat, warming the solar panel casing. That being said there are a number of factors that can impact the overall efficiency such as the solar panel age, materials they’re made with, and average sun exposure.